Mboweni expected to show government commitment to reduce large fiscal deficit

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Finance Minister Tito Mboweni’s budget speech on Wednesday afternoon is expected to show government’s commitment to reducing large fiscal deficit and debt levels.

Government has projected the budget deficit at around 14% of the Gross Domestic Product (GDP).

Mboweni is expected to present a narrowing deficit due to a rebound in growth.

Economic growth is expected to recover to 3.5%.

Nedbank economist Isaac Matshego says, “Spending needs are elevated but we expect the government to show commitment (and) to keep the growth in total expenditure under control. The budget deficit will remain wide but we do expect to drop to below 10% of GDP. Overall, we are confident the budget will reflect government continued commitment to revive the economy and stabilise the fiscal position.”

Meanwhile, in the video below, PWC’s Kyle Mandy says revenue collection has improved substantially: 

Below is the live stream of the budget speech:

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